"Officials from the Treasury and the Financial Services Authority (FSA) have been in talks with executives from the bank in a bid to secure its future," BBC said.
The Treasury would then sell Bradford & Bingley's 200 branches and its savings business to a bank or number of banks, BBC added.
Bradford & Bingley would be the second British bank to be nationalised this year after Northern Rock, which came into public ownership in February.
Bradford & Bingley has seen its share price crash over 90 per cent this year.
Quoting Bradford & Bingley spokesman Tony McGarahan, BBC said discussions were taking place and an announcement would be made before the stock market opened tomorrow.
BBC said the bank would be nationalised using the special legislation the Treasury had put through when it took Northern Rock into public ownership earlier this year. The measure is expected be announced on Sunday night or Monday morning.
However, the British Bankers Association is unhappy with some aspects of the plan.
Quoting the British Bankers Association chief executive Angela Knight, BBC said, "I am not comfortable with that. The financial services industry underpins, not just the UK economy, but indeed all of us individually, and there can be times where authorities have to step in."